Are you aiming to save for your newborn’s future college education? Do you want to adopt disciplined saving habits because you tend to spend all your earnings? Are you planning to save money for your future home’s down payment? You can do that via an endowment plan that gives you a better yield than a savings account.
Find out how much funds you will need to fund your child’s education in the future.
Taking up a Savings plan and Endowment policy a.k.a. endowment/savings insurance usually requires a financial commitment, and the policy is meant for cash accumulation returns. The policy may or may not have withdrawal options in the later life stages of your life.
However, not all insurance policies are created equal. InterestGuru.sg looks into the 4 best Savings plans and Endowment policies that provide the most value for your money.
In this review, we take an in-depth look into the following 4 endowment savings plans that provide a high guaranteed and projected cash value upon maturity.
- Best endowment savings plans for cashback features – Singlife Flexi Income II
- Best endowment savings plans for highest guaranteed returns – Singlife Choice Saver
- Best endowment savings plans for flexibility – Manulife ReadyBuilder II
- Best endowment savings plans for shortest premium tenure – China Taiping i-Saver8
This list of the 4 best endowment savings plans is updated as at 12/08/2024
Related article: 3 Best Savings Endowment Plans in Singapore with Lifetime Wealth Accumulation
What makes a good savings plan and endowment policy?
We look into Savings plans and Endowment policies that provide a good blend of product features, potential payout and flexibility of saving period. While all savings plans and endowment policies accumulate cash values, the cost of insurance riders may affect your surrender value when you need a payout.
Our criteria for picking the Endowment Policies below:
- Options for cash withdrawal
- Type of payout (Guaranteed and Non-Guaranteed)
- Policy and premiums tenure
- Other unique product features
Note: The Savings plans and Endowment policies listed below are not ranked in any priority. Early surrendering or cashing out from your endowment insurance policies will result in financial loss.
Read about: How does Savings Plans and Endowment Policies work?
Read about: Savings Plans and Endowment policies, are they suitable for me?
Best Endowment Savings Plan for Cashback Features – Singlife Flexi Life Income II
As the name Singlife Flexi Income II suggest, this plan offers you the flexibility to decide when your annual income payouts begin.
Single Premium Option: Your capital is guaranteed from as early as the 3rd year, with income payouts starting from the 3rd year and continuing for life. This option serves as an excellent alternative to fixed deposits, with the added convenience of not needing annual renewals at the bank.
Regular Premium Option: You can choose a premium payment term as short as 3 years. Your capital is guaranteed from the 3rd year, and income payouts begin from the 3rd year and continue for life.
If you don’t need the income immediately, you can reinvest it at an annual rate of 3% to further grow your wealth!
Besides lifelong wealth accumulation and income payout, the policy can be assigned to a loved one as the secondary life assured to carry on wealth accumulation for maximum returns, even after you have passed on.
What we like about Singlife Flexi Income II
- Income stream for a lifetime
- Availability of short premium tenure
- Income can be pay out for life from as early as the 3rd year
What we don’t like about Singlife Flexi Income II
- Shorter premium tenure also means a higher annual premium. For Single premium, the minimum premium is about 42k. For 3 year premium term, the minimum premium is about $15,000
Whatsapp us to let a licensed financial adviser work out a comparison proposal according to your needs at no cost to you.
Read about: Singlife Flexi Income II Review (in-depth plan details)
Other similar plans that you can consider
Best Endowment Savings Plan for Highest Guaranteed Returns – Singlife Choice Saver
Singlife Choice Saver (previously known as Aviva MyChoiceSaver) is an endowment savings plan that allows you to save over a short time or for a lifetime.
Flexible premium payment terms ranging from 5, 10, 12, 15, 18, 20 or 25 years for a policy term of 10 to 25 years or up till age 99.
There is no flexibility to withdraw the funds, however, you can choose to reassign the policy to a loved one for them to enjoy the benefit of the policy. This option can be exercised twice in the entire lifetime of the policy.
What we like about Singlife Choice Saver
- 100% capital guaranteed upon policy maturity
- Option to change the life assured to your loved one to carry on the policy
- Receive an additional 3% of the sum assured upon reaching certain life milestones (i.e. marriage, buying a property, etc.) up to 2 claims
What we don’t like about Singlife Choice Saver
- No single premium option
- Surrendering the policy any time before the policy maturity may incur financial loss
Interestguru.sg tips:
Do you know it is better to go for the shortest premium tenure and longer accumulation period to maximise your returns? For example, you will get a better yield for a 5 pay 20 plan (Pay premiums for 5 years and wait (accumulation period) for 15 years) than a 10 pay 20 plan? Let us compare and show you the difference. You can thank us later.
Whatsapp us to let a licensed financial adviser work out a comparison proposal according to your needs at no cost to you.
Read about: Singlife Choice Saver Review (in-depth plan details)
Other similar plans that you can consider
Best Endowment Savings Plans for Flexibility – Manulife ReadyBuilder II
Enjoy the freedom of unlimited withdrawals as well as lifelong wealth accumulation. Manulife ReadyBuilder II lets you achieve multiple goals in a single savings insurance plan.
Besides lifelong wealth accumulation, the policy can be assigned a loved one as the secondary life assured to carry on wealth accumulation for maximum returns, even after you have passed on.
What we like about Manulife ReadyBuilder II
- The flexibility of withdrawal from the policy’s cash bonus whenever cash value is avaliable
- The option to stop paying the insurance premium for up to a year, with no penalties or interest chargeable on the payable premiums
- Continuity of plan to the next generation or third party
- Retrenchment benefit: 50% of annual premium payable to you as a lump sum
- Wavier of future premiums in the event of Total and Permanent Disability
What we don’t like about Manulife ReadyBuilder II
- Surrendering the policy any time before the 15th year may put you on a financial loss
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Read about: Manulife ReadyBuilder II Review (in-depth plan details)
Other similar plans that you can consider
Best Endowment Plan for Shortest Premium Tenure – China Taiping i-Saver8
China Taiping i-Saver8 is a savings plan that lets you save 2 yearly premiums with a policy term of 8 years. What makes it even more appealing is that it offers a capital guarantee feature upon maturity.
Simply put, this plan provides a straightforward way to save and accumulate wealth without any unnecessary frills. It’s ideal for those seeking a short-term savings plan.
What we like about China Taiping i-Saver8
- Short term premium tenure
- Short policy term of 8 years
What we don’t like about China Taiping i-Saver8
- No single premium payment option
- No option to choose a longer accumulation period
[show_contact_popup text=”Drop us a message”] or Whatsapp us to let a licensed financial adviser work out a comparison proposal according to your needs at no cost to you.
Read about: China Taiping i-Saver8 Review (in-depth plan details)
What can I do next?
Is this your first Life Insurance policy besides your Integrated Shield Plan? Find out how exactly you should start your financial planning instead. While saving plans and endowment policies offers a better rate than bank deposits, prioritize the more important financial objectives and goals instead such as your insurance coverages.
Read about: How much life insurance coverage do you need? *Popular*
As most savings plans do not require health underwriting, such policies can be taken up regardless of your health conditions. Insurance coverages, on the other hand, require you to have a clean bill of health or you may face exclusions or rejection of your application.
Hence, it is important to ensure your health and protection coverage is already taken care of by a Whole Life, Investment Linked Policy, or Term insurance.
Read about: 3 Best Whole Life Insurance Plans in Singapore for Insurance Coverages (Updated)
Read about: 6 Best Investment Linked Policies in Singapore for Wealth Accumulation (Updated)
Aim to maximise the financial returns on your savings
Wherever possible, make sure that your financial budget is sufficient to cater to the payment of the savings plan, instead of overstretching and relying on any available cashback options.
We strongly recommend you to read the following articles for wealth accumulation purposes. Understand why a shorter insurance premium payment period affects your financial returns more than you would have expected.
Read about: How can I accumulate a million dollar (Realistically)
Which Endowment Savings Plans are the most suitable for you?
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